Maybe you’ve thought about investing in gold but haven’t yet made the decision.
As with any investment, it’s wise both to do your homework and to enlist the help of professionals who know the market inside and out and can answer the questions you’re sure to have. What’s the best form of gold to buy – coins or bars? Should I keep it at home or in off-site safe storage? What percentage of my overall investment portfolio should be in gold? And is investing in gold “safe”?
A precious metal such as gold gets its value from supply and demand. Mines in the United States produced 211 tons of gold in 2014. As available sources of the commodity are mined to exhaustion, it becomes more difficult and expensive to find and take advantage of less easily accessible supplies. At the same time, emerging markets in countries where affluence is growing can generate steadily increasing demand that keeps the price up.
These days, anyone who wants to purchase gold can do so either in person or online. A popular choice for those investing in gold coins is the American Gold Eagle. It’s the most traded coin in the world and represents 80% of the bullion in circulation in the United States, where the total amount of gold circulated and deposited is $7.6 trillion.
The heaviest gold bars you can find for sale at a typical store weigh ten ounces. Other available sizes include one kilogram (32.15 ounces) and 400 ounces. There are two types of bar – minted and cast – and most are from 99 to 99.5% pure, which is very close to 24K. Of course, at the time of purchase you can expect to pay the seller a fee that is slightly more than the daily gold spot price.
Ask about fully-insured safe storage options, if you’d rather not keep your gold at home.
Advice varies as to how much of your portfolio should be held in precious metals. Each individual’s needs are unique, and comfort levels regarding risk vary from one person to the next. Do your research to determine what position best matches your needs and desires.
Many experts say that the best reason for investing in gold is to establish your own personal hedge against inflation. No matter how other markets may fluctuate and prices may rise or fall over time, there’s a certain feeling of security that comes with owning a commodity of relatively stable value that you can both see and touch.
